Standard Life reports slide in UK life and pension sales

Standard Life has become the latest life assurer to post a sharp drop in full-year life and pension products sales.

The FTSE 100 company unveiled a 9pc fall in UK sales to £12.2bn against what chief executive Sir Sandy Crombie described as "an increasingly difficult economic backdrop". During the fourth quarter, life and pensions sales slumped 25pc to £2.4bn.

Standard Life

The slide highlights how people are spending less money on life and savings products. It comes just a day after rival Friends Provident unveiled an 11pc slump in sales.

Standard Life also revealed that its plans to cut down on its mortgage exposure led to gross mortgage lending tumbling 70pc to £1.1bn in 2008.

However, the company said it had £3.5bn of money above what is needed to meet regulatory requirements. This surplus figure was broadly unchanged from the £3.4bn reported as at September 30.

It also reported growth in its overseas markets, with joint ventures in India and China, and its Hong Kong operation posting combined sales of £495m, up 17pc. Sales in Canada increased 9pc to £2bn although worldwide life and pension sales fell 6pc to £15.6bn.

"Conditions across all our markets will remain challenging during 2009 with the combination of weakening economic conditions and an unprecedented level of dislocation in financial markets," Standard Life said. It added that it is confident "in our ability to outperform in the profitable segments in which we operate".

Shares in Standard Life rose 7.5pc in early dealings to 222p. Credit Suisse described the figures as in-line. It said: "Positive comments on operating earnings and lack of negatives will support the stock today in the current market."